City jobs on the line at Commerzbank

UP TO 500 City bankers face the axe at Commerzbank. The German bank is cutting 3,100 jobs worldwide, 50% more than expected, are part of a cost-cutting strategy aimed at returning the bank to profitability.

Sources said that between 300 and 500 of the jobs will be lost in London, part of 1,100 job losses worldwide in addition to 1,500 at the central Frankfurt office and 500 at Commerzbank Securities.

The cuts come on top of plans already in place to slash 4,300 jobs by the end of next year. Commerzbank also said e460m (£316m) of its targeted e688m in cost cuts would be implemented this year.

The bank employed 37,100 at the end of last September but it plunged into the red in 2002, posting its first net loss, of e298m.